When firms have obligations that do not meet the formal definition of a liability, U.S.GAAP require that firms
A) disclose information about such obligations in notes to the financial statements.
B) highlight such arrangements in the Management Discussion and Analysis section.
C) have the auditor address such matters in a separate paragraph in the independent auditor's report accompanying the financial statements.
D) do not mention the obligation because they are not valid liabilities and to do otherwise would mislead the readers of the financial statements.
E) none of the above.
Correct Answer:
Verified
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